Your privacy and protecting your privacy is important to Pilgrim Bank and our employees. This statement is intended to help to understand what information we collect and how we use it. In order to provide our customers with a broad range of financial products and services as effectively and conveniently as possible, we use technology to manage and maintain customer information. The following Statement describes guidelines used by Pilgrim Bank employees for collection, use, retention, and security of nonpublic personal information.

What Information We Collect
We may collect "nonpublic personal information" about you from the following sources:

• Information we receive from you on applications or other loan and account forms;
• Information about your transactions with us, our affiliates or others; and
• Information we receive from third parties such as credit bureaus.

"Nonpublic personal information" is nonpublic information about you that we obtain in connection with providing a financial product or service to you. For example, nonpublic personal information includes information regarding your account balance, payment history, and overdraft history.

 What Information We Disclose
We are permitted under law to share information about our experiences or transactions with you or your account (such as your account balance and your payment history with us) with companies related to us by common control or ownership ("affiliates").

We also are permitted under law to disclose nonpublic personal information about you to "nonaffiliated third parties" (third parties that are not members of our corporate family) in certain circumstances. For example, we may disclose nonpublic personal information about you to such third parties to assist us in servicing your loan or account with us; to government entities in response to subpoenas; and to credit bureaus. In addition, we may disclose nonpublic personal information we collect to: service providers, such as companies that perform mailing services; and unaffiliated financial institutions with whom we have joint marketing agreements.

We do not disclose any nonpublic personal information about you to any other third parties, except as permitted by law.

 PILGRIM BANK DOES NOT SELL CUSTOMER INFORMATION.

Any information transmitted to us through our internet site is protected by a data security system know as "SECURE SOCKET LAYER" (SSL). SSL is designed to insure that transmitted information is encrypted and protected at all times. To provide better service and a more effective website, we may use "cookies" (cookies are messages a website sends to a web browser) as part of our interaction with your browser. These cookies do not collect personally identifiable information. You may disallow cookies by making the appropriate selection from your browser options. You should understand, however, that certain services provided by our bank require cookies for effective delivery.

If you decide to close your account(s) or become an inactive customer, we will continue to adhere to the privacy policies and practices described in this statement.

Our Security Procedure
We also take steps to safeguard customer information. We restrict access to your personal and account information to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Texas Notice
Pilgrim Bank is chartered under the laws of the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Banking. Any consumer wishing to file a complaint against Pilgrim Bank should contact the Texas Department of Banking.

Pilgrim Bank also engages in the money transmission business as an authorized delegate of MoneyGram International and The Independent BankersBank under Chapter 151 of the Texas Finance Code. After first contacting MoneyGram International or The Independent BankersBank, a customer that still has an unresolved complaint regarding the company's money transmission activity should direct the complaint to the Texas Department of Banking.

Consumers may file complaints with the Texas Department of Banking by contacting the Department through one of the means indicated below:

In person or U. S. mail:
Texas Department of Banking
2601 North Lamar Boulevard
Suite 300
Austin, TX 78705-4294

Telephone Number: 1-877-276-5554 (toll free)
Fax Number: 512-475-1313

E-mail address: consumer.complaints@banking.state.tx.us
Website address: www.banking.state.tx.us

 Fair Credit Reporting Act, Consumer Rights
You have a right, under the Fair Credit Reporting Act, to dispute any information we have provided a credit reporting agency concerning your account relationship with Pilgrim Bank. If you wish to dispute any such information, please address your written response to the following address:

Pilgrim Bank
Loan Funding Department
P.O. Box 1288
2401 S. Jefferson St.
Mt. Pleasant, Tx 75456

In your written response to Pilgrim Bank, please provide as much detailed information as you can regarding the specific information we have reported that you dispute. Include a copy of any documentation that would help us determine if your dispute about the accuracy and completeness of our information is incorrect.

We will advise you, in writing, on the results of our research within 30 days of receiving your letter. If within our 30 day research period you provide us additional information, we may take up to 45 days to research your dispute. If we hear nothing further for 30 days after we have responded to your letter, we will consider your dispute satisfied.